Speaker B breaks down a stock entry strategy after big moves: take only one-quarter of your position on the first red day, then wait for the second day to confirm the downtrend. The key is comparing prior-day volume (like 200M shares) to pre-market volume (5-7M shares) to find resistance and time your full entry.
That was a $7 million trade? Yes. How do you go about the entry on the first red day?
So once we have the pre-market, then we consolidate and we have reached the dollar amount right here, 3 billion. On the very first day, once it reaches, only sizing maybe 1/4 of your positions. The reason why is momentum doesn't likely to shift when the volume is extremely high. So you are waiting for the second day because second day tells you the stock is going to drop. Now the reason why is apply into the bounce short concept. The bounce short concept is on the intraday volume, you are not going to compete with the resistance volume. There's more people selling apples than current day buying apples. It's the same concept after we go into the second day, 200 million volume. Pre-market only traded 7 million or maybe even 5 million. By volume estimate, you are not going to compete with the 200 million on the previous day. Volume ratio becomes significantly different, becomes 4 to 1 or maybe 3 to 1.
And this is where we're entering the first red day. This is the prior day.
Yeah, this is where entering the first red day. Got
